BORREGO SOLAR NETS PROJECT FINANCING

Bank funding will pave the way for 12 new installations

Borrego Solar Systems of San Diego said Tuesday that it had secured $47 million from U.S. Bank and East West Bank to finance 12 solar energy projects for businesses, schools and government customers.

The banks, which have partnered with Borrego Solar in the past, provided the financing as part of a power purchase agreement system used by Borrego Solar and other solar providers to fund installations.

With power purchase agreements, Borrego Solar builds and operates the solar power system itself. It then enters into a long-term agreement with the customer to buy the energy produced, usually at an initial cost that is less than what the customer was paying a utility.

The systems strive to allow customers to achieve predictability and cut costs on their power bills without facing the hefty upfront costs of solar panel installation.

The new financing will be used to build six megawatts of solar energy systems in California, including 10 projects for three school districts.

The fund also will finance two Massachusetts solar power installations, one of which is expected to be the largest of its kind in that state at 4.7 megawatts. These projects are expected to generate enough electricity to power roughly 2,000 homes.

“We’re excited about this investment, as it will allow us to deliver on more projects, help organizations go solar with zero upfront costs, and create new jobs,” Mike Hall, chief executive of Borrego Solar said in a statement.

Borrego Solar last secured financing from U.S. Bank and East West Bank in June 2011 to build about nine megawatts of solar projects for customers in Massachusetts and New Jersey. The financing also was used to install systems at Edwards Air Force Base near Palmdale and in Santa Clara County. In total, Borrego Solar and the banks have partnered in more than $100 million in projects.